Key Takeaways:
- Mewawalla’s dismissal follows broader scrutiny of executive pay practices in crypto infrastructure firms.
- The lawsuit marks Mawson’s second major legal dispute in 2025, both linked to operational asset control.
- Canaan’s ongoing expansion at Mawson’s site continues despite parallel litigation.
Bitcoin miner Mawson Infrastructure has fired its CEO and President, Rahul Mewawalla, for cause, accusing him of breaching fiduciary duties and engaging in fraud.
According to TheMinerMag, the board placed Mewawalla on administrative leave shortly after notifying him of potential termination on May 30. By July 8, his removal became official.
Bitcoin Miner Mawson Sues Ex-CEO
Mawson has also filed a lawsuit in Delaware’s Court of Chancery seeking damages and the return of compensation awarded earlier this year.
In February, the board approved a $2.5 million cash bonus, 1.2 million restricted stock units, and a salary increase to $1.2 million for Mewawalla. The company cited “high-performing” leadership in that announcement.
In a July 17 letter to Mawson’s board, Mewawalla disputed the accusations, stating he “respectfully and vigorously” disagreed with the company’s account. He referred to the board’s own prior filings, which credited him with 36% revenue growth and improved gross margins during his tenure.
The company named General Counsel Kaliste Saloom as interim CEO. Mewawalla’s board seat has also been revoked.
The lawsuit filed against Mewawalla has not yet been made public, and the company has not released further details about the specific misconduct alleged. Mewawalla has not publicly responded beyond his letter to the board.
Second Legal Dispute in 2025
The complaint marks the second major legal dispute involving Mawson this year. In March, NYDIG’s parent company, Stone Ridge, and its mining subsidiary, Consensus Colocation, sued Mawson for allegedly taking control of 20,000 ASIC miners worth $30 million hosted at a facility in Midland, Pennsylvania.
Mawson has since signed a new agreement with Canaan to host over 17,000 new units at the same Midland site. The three-year deal includes approximately 64 megawatts of capacity and supports Canaan’s 4.7 EH/s hashrate expansion in North America.
The leadership change comes as the mining firm seeks to stabilize operations and attract partners in a competitive colocation market. Pending legal outcomes may influence future contractual relationships and financing terms.
The incident reveals ongoing governance challenges in the crypto mining sector, where executive pay and accountability remain under heightened scrutiny. Boards may face increased pressure to justify incentive structures and enforce oversight mechanisms in such a volatile environment.
Frequently Asked Questions (FAQs)
In companies operating both infrastructure and financial services, fiduciary obligations may cover both traditional shareholders and tokenholders, adding complexity to governance enforcement and dispute resolution.
Ongoing legal disputes and leadership changes can raise counterparty risk concerns. Equipment manufacturers and hosting partners may renegotiate terms or delay new agreements pending resolution.
While the current proceedings are civil, if fraud is substantiated, state or federal regulators may initiate separate enforcement action depending on the facts.
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